POUGHKEEPSIE >> Central Hudson Gas & Electric Corp. is warning of rate increases of 8 percent for homeowners and 15 percent for businesses under a plan by the Federal Energy Regulatory Commission to limit sources of electricity.

The utility this week said federal regulators are establishing “capacity zones” that would artificially push up the price of electricity.

“Right now, we can take capacity from about 30 (electric) generators statewide,” said Central Hudson spokesman John Maserjian. “In the new capacity zone, that would be reduced to three, maybe four generators.”

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Capacity is the amount of electricity that Central Hudson is required to have available under peak conditions on any given day and represents an amount from about one-third to double the actual consumer use average. Under the federal plan, Central Hudson would be limited to buying that capacity only from sources from an area south of the Capital District and north of the New York City metropolitan area.

“The Federal Energy Regulatory Commission recognizes the existing constraints or bottlenecks within the transmission system within New York state,” Maserjian said. “Because of that, areas south of that constraint, in their view, should be subject to a new capacity zone.”

Maserjian said the capacity zone is being established to attract new electric generating companies to come to the region.

“The thought is if new generation were located here, that would make up for the restrictions in the transmission system,” he said. “We believe that the true effect of this is going to benefit existing generators at the expense of our customers. Basically, it’s a wealth transfer from our customers to the generators.”

Capacity-related costs to customers were not part of a promise made this year by the Canadian-based Fortis Inc. during its successful takeover of Central Hudson’s parent company, CH Energy Group, to freeze rates for two years. Maserjian said rates discussed in the takeover process were limited to the cost of delivering electricity to customers.

Maserjian said the new rules are scheduled to take effect on in March 2014 but that utilities and the state Public Service Commission are trying to convince federal regulators that plans for new transmission lines will resolve the problem.

“Our contention is by solving the constraints that currently exist in the transmission system, there would be no need for a capacity zone,” Maserjian said. He said the strain on electric demands is felt by utilities north and northwest of the Hudson Valley because there is more electricity generated in those areas and existing equipment can’t meet peak demand.

The Public Service Commission is considering three proposals to add a third 345-kilovolt electric power line that largely follows an existing corridor from Leeds in Greene County through Columbia County and south through the Dutchess County towns of Milan, Clinton, Hyde Park and Pleasant Valley. A fourth plan would largely use an existing corridor that runs from Hudson to Kingston and south to Ramapo.

“These transmission projects would benefit the Hudson Valley and the metropolitan area,” he said.

Maserjian noted that the proposed additional lines have drawn opposition in Columbia County and Northern Dutchess. However, he said he is hopeful critics will come to an understanding that substantial changes are needed in the distribution system.

“As many residents began voicing concerns, we thought it would be prudent at this time to reiterate some of the reasons why it’s important that these transmission proposals be given full consideration,” he said.